Checklist DBA Law: Tips for Freelancers and Clients

3 December 2024

At G-Nius, we understand how important it is to establish clarity between freelancers and clients. With the DBA Law (assessing work relationship between client and contractor), the government aims to prevent false self-employment, but it can also lead to many questions and uncertainties.

To support clients and independent professionals in establishing a collaboration that complies with the DBA Law, we have created a practical checklist. This checklist minimizes risks and provides a solid foundation for a successful partnership.

Already working with us? Then everything related to this legislation is already taken care of for you.

1. Focus on the Results

A DBA-compliant collaboration should center around the end result, not the method of execution.

✅ Best Practices:

Clearly define the desired outcome, e.g., “Implementation of a new ERP solution within six months.”
Allow the contractor to decide how to achieve the goal.

❌ What to Avoid:

Providing detailed work instructions or micromanaging.

Example:
For a migration project, the client focuses on the agreed deliverables rather than daily tasks, giving the freelancer the freedom to use their own methods and tools.

2. Avoid a Hierarchical Relationship

The client must not act as a manager. Freelancers should work independently without direct supervision.

✅ Best Practices:

Let the contractor make decisions regarding execution.
Limit involvement to evaluating the final results.

❌ What to Avoid:

Daily instructions or frequent check-ins as if managing an employee.

Common Mistake:
Providing constant feedback on minor details may be seen by tax authorities as establishing a hierarchical relationship.

3. Freedom in Execution

Independent contractors must have the freedom to determine their work hours, methods, and resources.

✅ Best Practices:

Allow the contractor to choose when and how they work.
Focus on leveraging their expertise.

❌ What to Avoid:

Imposing fixed working hours or mandatory tools unless absolutely necessary.

4. No Obligation for Personal Labor

Freelancers should have the option to delegate or substitute their work if needed.

✅ Best Practices:

Permit replacements as long as quality standards are met.
Focus on results rather than the individual performing the work.

❌ What to Avoid:

Requiring that only one specific individual completes the work (except in cases of unique expertise).

Tip:
Include a clause in the agreement specifying the possibility of substitution and the related conditions.

5. Liability and Insurance

Freelancers are responsible for their own work and associated risks.

✅ Best Practices:

Verify that the contractor has liability insurance.
Clearly outline that the contractor is accountable for any mistakes.

❌ What to Avoid:

Proceeding without clear agreements about liability.

6. Financial Arrangements

A freelancer’s payment is based on the assignment, not like a traditional employment contract.

✅ Best Practices:

Agree on a fixed hourly or project fee.
Ensure there are no payments for sick leave or holiday pay.

❌ What to Avoid:

Payment structures that resemble employment, such as a fixed monthly salary.

7. Clear Duration and Termination Terms

A robust contract should outline the project’s duration and termination conditions.

✅ Best Practices:

Define a clear start and end date or specify an end goal.
Include termination terms for both parties.

❌ What to Avoid:

Open-ended contracts without clear deadlines or deliverables.

8. Use of Own Materials

Freelancers typically work with their own tools and equipment.

✅ Best Practices:

Allow the contractor to use their own tools, software, and equipment.
Limit reliance on the client’s resources.

❌ What to Avoid:

Requiring the use of client-owned tools unless absolutely necessary.

9. No Integration into the Organization

Freelancers should not function as part of the client’s internal team.

✅ Best Practices:

Ensure the contractor maintains a separate role from the client’s employees.
Limit involvement in internal activities, such as meetings or team events.

❌ What to Avoid:

Inviting freelancers to company lunches, training, or staff social events.

Common Mistake:
Including freelancers in team meetings unrelated to the project can give the impression of an employment relationship.

Avoiding Common Mistakes

A successful collaboration between clients and freelancers hinges on clear agreements. Common mistakes include:

Focusing on daily tasks instead of results.
Unintentionally creating a hierarchical relationship by exerting too much control.
Having unclear agreements regarding liability and substitution.

Ask yourself:
Are your project descriptions DBA-compliant? Or are you at risk of tax penalties?

How Can G-Nius Help?

At G-Nius, we specialize in connecting supply and demand while ensuring the legal certainty you need. We work with model contracts and follow a DBA-compliant approach, ensuring that both professionals and clients benefit from clear and legally valid agreements.

Want to learn more? Contact us at info@g-nius.nl and ensure your collaboration is not only successful but also legally right.